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1st Global Capital Review

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1st Global Capital Review

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Date Established
2013
Location
Hallande Beach, FL

Pros

  • 2-7 days time to funding
  • Good customer service

Cons

  • High origination fee
  • Opaque terms and fees

Overview

1st Global Capital is a Florida-based merchant cash advance (MCA) alternative funder serving small-to-mid-sized businesses with good cash flow but generally poor credit.

1st Global is on the younger side for a MCA, though not quite a newcomer. It’s maintained a decent reputation in its four years of operation; however, it doesn’t appear to be keeping up with the industry’s slow evolution toward transparency.

Note: You should approach the world of alternative funding with caution; the rates are often usurious and the terms can be punishing for the unprepared or unlucky. You should always make sure you’ve exhausted other potential sources of funding first. (Take a look at our handy short-term funding comparison chart to review your other options.)

Services Offered

1st Global Capital offers the following types of business funding:

They also offer a line-of-credit-like product that allows businesses to seek pre-approval for an advance.

Borrower Qualifications

1st Global Capital requires clients to meet the following prerequisites:

Time in business:1 year
Credit score:N/A
Business revenue:Monthly sales > 1/3 the amount of funding you’re seeking

Terms & Fees

1st Global’s terms and fees fall into this range:

Borrowing amount:$7K+
Term length:3 – 12 months
Flat fee:Unknown
Origination fee:4%
Effective APR: Learn more
Collateral:Personal guarantee

1st Global is a fairly traditional MCA provider, offering funding to businesses with a steady flow of credit and debit card sales.

If you are approved for funding, 1st Global will disburse a lump sum. The money is technically not a loan, but a payment for a percentage of your future profits. This is primarily a legal distinction. The amount you’ll owe is based on a number called a factor rate. Although 1st Global does not disclose their rates, you can generally expect them to fall between 1.2 and 1.5. The factor rate is multiplied by the amount you’re advanced to determine the amount you’ll have to pay back. So if you borrow $10,000 at 1.3, you’ll owe $13,000, plus a 4 percent origination fee and any other fees (though these are sometimes deducted from the amount you receive rather than added to the amount you owe).

Note that the amount you owe will be static. It won’t accumulate interest, nor will you reduce your fee by paying it off early. Be aware, however, that the simplicity of an MCA’s formula can hide just how expensive the money you’re receiving is.

As for repayment, each business day 1st Global will hold back a percentage of your credit and debit card sales. This is an open-ended process that continues until 1st Global has collected the fee in entirety, but generally, the term length will last 3 months to a year.

Application Process

1st Global, like most alternative funders, prides itself on the speed and simplicity of its application process. You can begin the pre-approval process by filling out an online application or calling the company directly.

If you clear the initial screening, a representative will contact you. You’ll need to provide four months of credit-card processing statements.

The entire process, from start-to-finish, takes about 72 hours.

Sales & Advertising Transparency

Though not the worst offender we’ve come across, 1st Global doesn’t offer much specific information about its products (beyond describing what a merchant cash advance is in broad terms).

You’ll also want to read the fine print, as some of the advertising can be a bit misleading. For example, the site claims to be able to help businesses of any age but immediately contradicts that statement by saying that qualifying businesses have to have been operating for a year or more.

Customer Service & Technical Support

1st Global can be reached by phone at 888-374-3150, by email (support@1stglobalcapital.com), or through their Facebook account.

Based on reviews, customer service seems like a mixed bag. Some customers report having difficulty reaching a representative, while others describe pleasant, helpful interactions.

Negative Reviews & Complaints

1st Global is in good standing with the BBB, maintaining an A+ rating with one negative review on record and five complaints. There are also a smattering of user reviews on Google. Here are a few of the issues users cite:

  • Hard to reach: A number of customers have complained about not being able to reach 1st Global staff in a timely fashion.
  • Billing issues: Some people complained about discrepancies between the amount they thought was being deducted from their accounts and the amount that actually was taken out.
  • Aggressive marketing: A few individuals complained of receiving aggressive cold calls.

Positive Reviews & Testimonials

Positive customer reviews of 1st Global can be found on Google.

  • Helpful, patient staff: Customers generally liked the customer service they received.
  • Fast: Many people liked the easy application process and the speed at which they received their funding.
  • Easy to qualify: Customers who had had a hard time qualifying for other types of funding appreciated that 1st Global was able to help them.

Final Verdict

1st Global comes across as a fairly standard MCA company, with many of the advantages and unfortunate habits endemic to the industry. One of their bigger selling points is that they originate all of their own advances, so there won’t be any third parties adding complications to the mix. On the other hand, 1st Global isn’t especially transparent, a less forgivable vice as the industry matures.

As always, we suggest serious comparison shopping when it comes to subprime lending/funding. Take a look at our alternative suggestions page for some ideas.

Chris Motola

Chris Motola

Finance Writer at Merchant Maverick
Chris Motola is a writer, programmer, game designer, and product of NY. These days he's mostly writing about financial products, but in a past life he wrote about health care and business. He's a graduate of the University of Central Florida.
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